An Abuja court has heard testimony alleging that former President Olusegun Obasanjo personally directed an increase of N11 billion in the budget allocation for the Mambilla Hydroelectric Power Project shortly before its approval in 2003.
The evidence was given by Umar Babangida, an Assistant Commissioner of Police attached to the Economic and Financial Crimes Commission (EFCC), during the trial of former Minister of Power and Steel, Dr Olu Agunloye.
Agunloye is being prosecuted on behalf of the Federal Government on charges including conspiracy, forgery, disobedience of presidential directives and receiving gratification. He denies all allegations.
Babangida told the court that Obasanjo was keen to ensure the long-delayed Mambilla project took off and met privately with Agunloye on 20 May 2003. According to EFCC findings, the meeting took place on the eve of a Federal Executive Council (FEC) session.
He said the former president instructed the minister to raise the project’s budget by N11 billion, in addition to the N6 billion already approved in the 2003 appropriation. Obasanjo later referred to the increase during the FEC meeting, although without providing full details of the earlier discussion.
The witness explained that the project, first studied in 1981, had taken more than two decades to reach the award stage and that seven interested companies were assessed before a preferred bidder emerged.
Babangida also outlined how the government initially considered taking a 25 per cent equity stake in the $6 billion power project. However, discussions at the FEC led to calls for a review of the proposed level of government participation.
He told the court that the Council eventually directed Agunloye to withdraw his memorandum in order to renegotiate terms with investors and explore alternative funding arrangements that could reduce the government’s equity contribution.
In a letter dated 22 May 2003 to Sunrise Power and Transmission Company Limited, Agunloye stated that government participation would be reduced to between zero and 10 per cent. The witness, however, maintained that the final outcome did not align with that provision.
Justice Jude Onwuegbuzie adjourned proceedings until 2 February to allow for further cross-examination of the prosecution witness.
